The Village Apartments
Forest Lake, MN
252 Units
Legacy Asset
Strategic Renovations
506C Investment
Accredited Investors Only
Target Raise:
$10.15 Million
Min. Investment
100k
Investment Opportunity: Target Raise $10.15 Million.
Forest Lake, MN
Unlock significant value with The Village Apartments—strategically located, poised for growth, and offering promising returns.
The Village Apartments, a legacy asset developed and meticulously maintained by its original owners, is now available for sale due to changing family circumstances. Located in Forest Lake, MN, just 30 minutes northeast of the Minneapolis, this property offers significant value-add potential through strategic renovations. Despite not being the highest bidder, our strong market relationships and reputation secured this opportunity. The property is adjacent to the 2020 A Class Encore Apartments and consists of a range of floor plans from studios to two-bedroom units. Currently assessed at $33.1 million, we are purchasing it for $24.5 million, with plans to renovate 30% of the units.
Forest Lake is known for its abundant outdoor activities and natural beauty, featuring numerous lakes and ample recreational opportunities. The area is expected to experience a 40% population growth over the next 20 years, making it an increasingly desirable place to live. The Village Apartments' operating expense ratio is currently inflated due to high repair and maintenance and management fees, which we project to significantly improve under our ownership. Investors can expect a projected annual return rate (ARR) of 16-19% over five years, with a total equity raise of $10.15 million
Investment Summary
The Village Apartments in Forest Lake, MN
Deal Size: $10.15 Million
Number of Units: 252
Preferred Return Class A1: 8%
Preferred Return Class A2: 7%
Preferred Return Class A3: 6%
Equity Multiplier: 1.85-1.95x
Renovation Budget: $1,650,050
Occupancy: 97%
Loan Assumption: 3.5 years IO, 5.61% fixed rate
Hold Time: 5-8 years depending on market conditions
Unlock Value with The Village Apartments
Why Invest in The Village Apartments?
Strategic Location
Forest Lake, MN, is a growing suburb of the Twin Cities, offering both urban conveniences and scenic outdoor activities.
Significant Value-Add Potential
With plans to renovate 30% of the units, there is substantial potential to increase rents and overall property value.
Attractive Purchase Price
Acquired at $24.5M, significantly below the county-assessed value of $33.1M, ensuring a strong starting equity position.
Robust Market Conditions
Forest Lake is projected to see a 40% population increase in the next 20 years, driving demand for quality housing.
Management & Operations
Secured a 3.5% management fee and streamlined operating expenses, replacing the inflated costs from previous ownership.
Strong Return Projections
Investors can expect a projected ARR of 16-19% over a 5-year hold, with multiple options for future property valuation.
Overview
AMENITIES HIGHLIGHTS
Forest Lake, MN
Renovated pool area with new furniture
Upgraded playground
Improved landscaping for better curb appeal
New signage for easy navigation and a welcoming atmosphere
NEXT STEPS
This offering is open to “Accredited” and “Sophisticated” investors (506C offering).
Step 1.
Reach out to our team to discuss your investment goals and learn about our offerings.
Step 2.
Gain exclusive access to prime real estate investment opportunities curated by our experts.
Step 3.
Make your investment and let our experienced team handle the underwriting, sourcing, and management.
Step 4.
Enjoy the benefits as we manage the properties, ensuring steady returns on your investment.
Meet The Team
About North Lone Star
Michael Piehler
Michael Piehler is the co-founder and managing partner of North Lone Star Capital. Born and raised in Plano, Texas, Michael made his way up to Minnesota where he attended Bethel University in Saint Paul, graduating magna cum laude with a degree in Economics and Finance. While there, he was captain of the hockey team and also played on the golf team. Michael began his career in commercial real estate as a broker before starting North Lone Star Capital. He currently works as the head of Acquisitions and Asset Management for NLS. His competitive nature, work ethic, and passion to serve others is invaluable to the firm. Michael, along with his wife and son currently reside in the Twin Cities.
Josh Walpole
Josh Walpole is a managing partner at North Lone Star Capital. Josh graduated from the University of Arkansas with a degree in Biomedical Engineering. He previously worked in spine surgical sales and is currently a commercial real estate broker. Josh has developed the skills to quickly evaluate, underwrite, and source capital for syndicated opportunities of all price points. Located in the Dallas Ft. Worth Metroplex, one of the most prosperous regions for multifamily investments, Josh understands what it takes to be successful in an extremely competitive market. Josh is tenacious in representing his clients and ensuring their investments exceed expectations.
Gavin Hart
Gavin Hart the co-founder and managing partner of North Lone Star Capital and has decades of experience in the real estate industry. Born in British Guiana to a cattle ranching family, Gavin was surrounded by hard working individuals. He moved to Venezuela as a young boy and eventually found his way to the United States in 2002. After years of experience in all facets of property management, Gavin started his own property management and maintenance service companies. He began his investment portfolio with single family rentals and was eventually drawn to the opportunities multifamily investing offers. Gavin plays an invaluable role in the company's Asset Management and Capex Oversight. Gavin resides in the Twin Cities along with his wife Desiree and their children.
Schedule a call with our team to discuss this offering in detail.
Frequently Asked Question
Can I invest using my IRA?
Yes, investors can use their IRA to invest in The Village Apartments. This type of investment can be made through a self-directed IRA, which allows for a broader range of investment options, including real estate. By using a self-directed IRA, investors can potentially enjoy the benefits of tax-deferred or tax-free growth on their investment.
Please reach out to our team so that we can guide you through the process.
What defines an accredited investor?
An accredited investor is defined by the U.S. Securities and Exchange Commission (SEC) under Regulation D. Here are the key criteria:
Income: An individual must have an annual income exceeding $200,000 (or $300,000 together with a spouse) in each of the last two years, with the expectation of earning the same or higher income in the current year.
Net Worth: An individual or a married couple must have a net worth exceeding $1 million, either alone or together with their spouse, excluding the value of the primary residence.
Professional Knowledge: Certain professional certifications, designations, or credentials (such as a Series 7, Series 65, or Series 82 license) or being a “knowledgeable employee” of a private fund can also qualify someone as an accredited investor.
Entities: Entities such as banks, partnerships, corporations, nonprofits, and trusts with assets exceeding $5 million, or in which all equity owners are accredited investors, also qualify.
These criteria are designed to ensure that accredited investors have the financial sophistication and ability to sustain the risk of loss, allowing them to invest in more complex and less regulated investment opportunities.
Please visit www.sec.gov for more information.
When will the first distributions be paid out?
Distributions will commence in Q3 following the close. Our priority is to ensure the property reaches a stabilized position before initiating payouts, ensuring a strong and sustainable financial foundation for our investors.